John Hussman Is Stating The Obvious......

I´ve promised to come back after QE 3.0 has started.... Well, it looks like Bernanke started at least the "campain" to hint QE 3.0..... Initially my comment that the break would take only a few weeks should sound ironic... With Bernanke in charge i should have known better...;-) Thank god he is 100 PERCENT! ( no typo ) certain ( his "brilliant" track record ,see Youtube : Bernanke in Denial, should insprice confidence.... ) he could stave off ( core LOL ) cpi inflation when and if it came to that... Probably no coincidence that the topic asset price inflation aka bubbles & the US$ didn´t made it into the interview .... ;-) ( Quote Mish : That was not really an "interview" on 60 minutes, it was an infomercial for Bernanke ) On the topic Bernanke & QE 2.0 i urge you to read the latest comment from Hugh Hendry, Jeremy Grantham & Mish.

Habe ja angekündigt spätestens nachdem QE 3.0 gestartet worden ist wieder etwas regelmäßiger zu bloggen.... Nach diesem Wochenende kann man sagen das Bernanke zumindest die Kampagne für QE 3.0 gestartet hat..... Eigentlich war mein Hinweis, das die Bloggerpause wahrscheinlich nur einige Wochen dauern wird, ironisch gemeint....Mit einem wie Bernanke an den Schalthebeln hätte ich es besser wissen müssen.... ;-) Nur gut das sich Bernanke zu 100 PPROZENT! sicher ist ( leider kein Übersetzungsfehler.... Nach Ansicht von Youtube : Bernanke in Denial sind Aussagen wie diese bestenfalls als bedenklich, bin halt ein höflicher Zeitgenosse, zu bezeichnen ) auf den eh schon massiv geschönten ( hedonisch, Kernrate, usw ) Warenpreiskorb auswirken .... Sicher kein Zufall das die Frage nach der Vermögenspreisinflation sprich BLASE sowie der US$ es nicht in das Interview, das Mish richtig als INFOMERCIAL für Bernanke bezeichnet, geschafft hat.... ;-) In diesem Zusammenhang empfehle ich einen Blick in den den letzten Kommentar von Hugh Hendry , Jeremy Grantham & Mishz u werfen...

John Hussman

It doesn't take much thought to recognize that, like Bernanke's actions, the actions of the ECB are ultimately likely to represent not monetary policy but fiscal policy.

When you buy the debt of countries that have a high likelihood of defaulting on this debt, or will avoid default only by the creation of currency that could have been issued to finance fiscal expenditures, it follows that you are engaging in fiscal policy without the authorization of elected governments.

We are allowing 99% of the world to accept budget cuts and austerity in order to defend bondholders from taking losses or having to accept debt restructuring. When bondholders lend money to a financial company or to a country, at a spread over the yield available safe debt, they are explicitly accepting the risk that the bet will not work out, and that they may lose money in the event of a restructuring.

When government policy at every level focuses on making bondholders whole, then government policy at every level focuses equivalently on protecting the inefficient and dangerous misallocation of capital.

Almost a miracle that so far the populist backlash & the social unrests against the "war on taypayers" are still minor... I fear that this will change rather sooner than later...... UPDATE: Video: Fire bombs, Stones Fly in Greek Riots; All Flights to/from Athens Cancelled

The daily headlines about trillions in black holes & the people in charge should be at least enough to give the Special Gold Report "In Gold We Trust" - Erste Group a shot..... In contrast to Hendry & Grantham i still think GOLD is not a bad long term hedge against the wisdom of the "Central Banksters" & politicians... ;-)

Bin überrascht das es bisher in Sachen Populismus und vereinztelten ( zu 99% glimpflich verlaufenden ) Demos vorwiegend in Südeuropa ( UPDATE: Video: Fire bombs, Stones Fly in Greek Riots; All Flights to/from Athens Cancelled bisher kein größerer Gegenwind für ständig wiederkehrende Rettungsaktionen einzig und allein zu Lasten der Steuerzahler gibt... Dank des bisher eingeschlagenen Weges befürchte ich allerdings das sich das demnächst ändern wird....Spätestens dann dürfte speziell Europa und der € irreparablen Schaden davon getragen haben....

Die inzwischen zur Gewohnheit gewordenen tagtäglichen ( und noch vor 12 Monaten für unmöglich gehaltenen) Schlagzeilen über gigantische Summen sowie die Historie der handelnden Personen sollten ausreichen zumindest mal einen Blick in den Special Gold Report "In Gold We Trust" der Ersten Group zu werfen... Obwohl ich damit anderer Meinung als Hendry & Grantham bin, denke ich das GOLD langfristig nicht die schlechteste Absicherung gegen die geballten Wesiheiten der weltweiten ( aber inbesonders der angelsächsich geprägten ) "Central Bankster" sowie der momentan handelnden Politiker ist....;-)

Without a good dose of humor the daily spin is almost impossible to withstand... So enjoy an almost instant classic.....

Da dies alles mit einer gehörige Portion Humor wesentlich leichter zu ertragen ist lege ich allen dringend den nachfolgenden Clip ans Herz....Dürfte bereits jetzt ( 4 Wochen nach Veröffentlichung ) als Klassiker durchgehen....

Update:

Did Bernanke Pull a Fast One Last Night? The Mess That Greenspan Made

Guest Post: Bernanke Is 100% Sure Jim Quinn of The Burning Platform via ZH

Lies, Half-Truths, and 100% Hubris on 60 Minutes Mish

Money Printing and 100% Confidence – Day 4 Pento & Baum via Tim

Helicopter Ben gets in a spin The Economist

The Daily Show With Jon Stewart	Mon - Thurs 11p / 10c
The Big Bank Theory
http://www.thedailyshow.com/
Daily Show Full Episodes Political Humor The Daily Show on Facebook

Jeremy Grantham "Night of the Living Fed’

After this post i will continue with my temporary "time out"...Image was just too spot on to pass and is topping even the "They Won´t Stay Dead" version".....

Werde nun meine wohlverdiente Pause fortsetzen....Konnte bei dieser wohl treffensten Illustration seit langem einfach nicht wiederstehen.....Toppt sogar noch die "They Won´t Stay Dead" Version...

Grantham October

Unlike Grantham i think this is a not a bad long term hedge against the wisdom of the "Central Banksters"... ;-)

Selbst wenn einer wie Grantham es etwas anders sieht denke ich das dies langfristig nicht die schlechteste Absicherung gegen die geballten Wesiheiten der weltweiten ( aber inbesonders der angelsächsich geprägten ) "Central Bankster" ist....;-)

Quotes Albert Edwards, Bill Buckler, Alan Greenspan,William Buiter, Mr Mantega ( Brazil’s Finance Minister ), Ben Davies & Ambrose Evans-Pritchard

Cannot believe that i´m quoting Greenspan without making the usual jokes about his "wisdom"......... ;-)

Fast unheimlich das man mal ohne Häme Greenspan zitieren kann...... ;-)

Albert Edwards via ZH

Central bankers, by pursuing policies that allowed the middle classes to borrow against rising asset prices, kept them consuming despite the stagnation of their incomes and hence disguised the effect of government policies that allowed the rich to acquire virtually all of the gains in GDP growth.

And in the process of “robbing” the middle classes and now still attempting to keep asset prices artificially high, they are also robbing our children of the ability to buy a house at an affordable price. Yet central bankers still see QE as key to maintaining the illusion of prosperity and stoking consumer spending

Bill Buckler via ZH

"Ninety-seven percent of all existing Treasury debt has been created since August 15, 1971! Ninety-three percent of it has been created since Mr Volcker “saved” the paper Dollar in late 1979! Please note that the gain in Treasuries and the loss in the US Dollar almost exactly cancel out.

Please note also that even the biggest gain in these paper markets fades into insignificance against Gold’s rise."And here is the answer all the "gold bugs" have been waiting for: "The paper money “price” of Gold will last as long as the attempt to make paper money “work” lasts. In the end, Gold will no longer have a “price” because it has reverted to its role as MONEY. Whenever and wherever that happens, that nation can return to the production of wealth - rather than “money”."

Alan Greenspan via The Reformed Broker

Mr. Greenspan replied that he’d thought a lot about gold prices over the years and decided the supply and demand explanations treating gold like other commodities “simply don’t pan out,” as Mr. Malpass characterized Mr. Greenspan. “He’d concluded that gold is simply different,” Mr. Malpass wrote. At one point Mr. Greenspan spoke of how, during World War II, the Allies going into North Africa found gold was insisted on in the payment of bribes. Said the former Fed chairman: “If all currencies are moving up or down together, the question is: relative to what? Gold is the canary in the coal mine. It signals problems with respect to currency markets. Central banks should pay attention to it.”

William Buiter via FT Alphaville

…even the fiscally best-positioned G7 countries, Germany and Canada, face major fiscal challenges. Germany would not be able to join the Euro Area today if it were not a member already, because it fails to meet the deficit criterion (no more than 3% of GDP) and the debt criterion (no more than 60% of GDP) – in the case of the public debt to GDP ratio, by a significant and growing margin. Indeed, the aggregate Euro Area fails both criteria by wide margins, and of the 16 individual member states, only Luxembourg and Finland qualify on both criteria…

With QE 2.0 now finally on the table & spreading "competitive devaluations" ( timing wasn´t bad... see Update)around the globe i think you should give the Ludwig von Mises reference via John Hussman a second look....

Da ja nun auch endlich offiziell QE 2.0 angekündigt worden ist und weltweit ein finaler Abwertungswettlauf ( Timing hätte schlechter sein können...siehe Update )in Sachen Währungen um sich greift ( und dabei rasant an Fahrt gewinnt ) kann es nicht schaden noch einmal einen Blick auf das Ludwig von Mises Zitat via John Hussman zu werfen....

UPDATE:

Ambrose Evans-Pritchard Telegraph

States accounting for two-thirds of the global economy are either holding down their exchange rates by direct intervention or steering currencies lower in an attempt to shift problems on to somebody else, each with their own plausible justification. Nothing like this has been seen since the 1930s.

Brazil’s finance minister Mr Mantega via FT Alphaville

Mr Mantega, Brazil’s finance minister, declared earlier this month that the Brazilian real was caught up in ‘a silent war’ in currency markets, as nations compete to speed up their economic recoveries by putting their exporters at an advantage…

Ben Davies Ft Alphaville

Within a single week 25 nations have deliberately slashed the values of their currencies. Nothing quite comparable with this has ever happened before in the history of the world. This world monetary earthquake will carry many lessons.

Got GOLD ? ;-)